Filinvest Land nets P6.3-B profit in 2019

MANILA – Filinvest Land, Inc. (FLI), the publicly-listed property arm of Gotianun-led Filinvest Development Corporation (FDC), reported a 7-percent increase in profit in 2019, driven by growth in revenues from its rental and residential businesses.

In a statement on Monday, the company said net income reached PHP6.28 billion in 2019 from PHP5.89 billion the previous year.

Its gross revenues rose by 16 percent to PHP25.67 billion on the increase in rental and residential revenues.

Residential revenue growth of 18 percent is attributable to the high sales take-up levels in 2018, as well as the completion of mid-rise and high-rise residential buildings in 2019.

FLI’s residential projects continue to address the needs of the end-user affordable and middle-income markets, which remain to be stable and underserved.

In 2019, FLI launched residential projects in greater Metro Manila such as Valenzuela City, Taguig City, Manila, Cainta and Muntinlupa, as well as in the provinces of Cavite, Rizal, Laguna, Pampanga, Cebu and Davao.

However, Gotianun-Yap said the first quarter of 2020 has been challenging for the country with notable calamities such as earthquakes in Mindanao, the Taal Volcano eruption and the coronavirus disease 2019 (Covid-19), a global health crisis.

“We have revised our project line up and have moved some launches originally scheduled for the second half of 2020 to 2021. As a result, our capex (capital expenditure) is expected to reach PHP16 billion for the year. We will, however, go ahead with residential projects in new geographies within the country. We have also allocated a significant amount of this year’s resources for the completion of additional office buildings, the innovation park, as well as the development of our townships. All of these signify our confidence that our company and the country will be able to hurdle the challenges ahead of us,” she said.

Meanwhile, rental revenue growth of 25 percent was on the back of the completion of two new office buildings that brought FLI’s total to 30 office buildings equivalent to 524,00 square meters of gross leasable area (GLA).

FLI’s target is to reach 2.1 million square meters GLA by 2024 for its recurring income business which include its office, retail, logistics/innovation and dormitel investment properties.

To further boost its rental business, FLI has also ventured into the logistics space through the launch of the Filinvest Innovation Park at New Clark City in mid-2019.

The company is seeing a demand for big land parcels and ready built factories to address the needs of the growing logistics and e-commerce industry.

Apart from lot leases, FLI is looking at constructing high specification structures for lease to customers. By the second half of 2020, the innovation Park can start receiving locators who may wish to immediately start their building and warehouse construction.

Meanwhile, planning and development of Phase 2 is programmed to commence by the fourth quarter of 2020.

The newly-completed government-built access road from the Subic-Clark-Tarlac Expressway (SCTEX) to New Clark City has substantially improved travel and transportation to and from the Filinvest Innovation Park. (PNA)